Unicorns in Latin America 2025: how the race to conquer the $1 billion mark is going

We recently learned how 2024 marked a recovery in venture capital funding figures for Latin American startups. Overall, funding in Latin American startups reached $4.2 billion, including all stages. At this rate, it is expected that by 2025 we will see the emergence of at least three unicorns.

The latest report from Wayra, the corporate venture arm of Spanish telecommunications firm Telefónica, revealed that given the conditions in Latin America, three new unicorns could be born.

Despite the economic instability that could impact the availability of capital, the report cites that Brazil will see the emergence of a new startup valued at $1 billion, namely Ambar, a construtech, and the AI process management platform Pipefy.

Likewise, other countries such as Mexico could also see the birth of a unicorn. Bright, the company that finances solar energy, and the logistics startup 99 Minutos are some of the candidates. The Argentine marketplace Agrofy, the Colombian proptech La Haus also join the race.

Fintechs lead the race

Fintechs are emerging as one of the most attractive sectors for investors, being a bastion for local entrepreneurship.

In the last quarter of 2024, Argentine fintech Ualá closed the year with a $300 million Series E round; while Brazil’s Asaas raised $148 million in its Series C.

While sectors such as fintech and SaaS have advantages in terms of scalability thanks to their technological models, at the same time they face high competition and a growing demand for specialized talent.

The outlook for unicorns

While there are different opportunities in sight, some experts talk about what can be considered an economic instability of local entrepreneurship, something that could negatively impact the availability of capital from investors.

Latin America is facing a scenario of a devalued market, especially due to the situation that depends on other economies, such as the US. This represents an additional obstacle compared to other continents.

Firstly, startups in the region face not only local competition, but also seek to overcome the challenge of reaching another market and expanding in Latin America. Adapting to the micro-economies represented by each country adds up to major challenges.

On the other hand, according to a report by the venture capital firm Cube Ventures, 85% of the latest transactions in the region show values below $250 million dollars and only 4% of these movements exceed $1 billion.

The advantage is that startups in the region are able to operate in complete environments and adapt quickly to complex capital raising situations, seeking alternatives to identify opportunities in adverse scenarios.

According to a recent report by the firm Distrito, 12 Latin American startups are emerging as the most promising to achieve it this year, here we present them.

The 12 startups that could reach a valuation of 1 billion by 2025

Argentina

• RecargaPay: Mobile payment platform that allows recharging credit, paying for services and managing transportation. With more than 7 million users, it has grown organically in recent years.

• Pomelo: Fintech that offers infrastructure for issuing and managing cards in the cloud. Its model has made it a strategic ally for banks and fintechs in Latin America.

Mexico

3. Kueski: fintech that has revolutionized access to personal credit in Mexico with its “buy now, paylater” model. It has granted more than 20 million loans and works with 25% of the main retailers in the country, which positions it as a strong unicorn candidate.

Brazil

• Tractian: develops industrial predictive maintenance solutions through intelligent sensors and specialized software.

• Blip: chatbot platform powered by artificial intelligence that optimizes digital business communication. Operates in 32 countries and continues to expand in key markets.
• Petlove: marketplace for pet products, with more than 15 million items available. Its subscription model has built a loyal and growing customer base.
• Mottu: motorcycle rental service for independent delivery drivers, including insurance and 24/7 assistance.
• CRM&Bonus: loyalty platform that uses giftback technology to measure and optimize the impact of commercial incentives.
• Flash: corporate benefits system that offers flexibility and personalization. It has more than 30,000 clients and one million users.
• Stark Bank: fintech specializing in digital banking solutions for medium and large companies. Its capacity for integration and expansion has attracted the attention of investors.
• Omie: cloud platform for business management, aimed at SMEs, that combines financial services with automation.
• Celcoin: infrastructure provider that enables other companies to integrate financial services into their platforms.